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Beta coefficients and the capital asset pricing modelPersonal Finance ProblemKatherine Wilson is wondering how much risk she must undertake to generate an acceptable return on
Beta coefficients and the capital asset pricing modelPersonal Finance ProblemKatherine Wilson is wondering how much risk she must undertake to generate an acceptable return on her portfolio. The risk-free return currently is 3%. The return on the overall stock market is 16%. Use the CAPM to calculate how high the beta coefficient of Katherine's portfolio would have to be to achieve a portfolio return of 11%.
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